New Category : Finance
BPL Has Over $500 Million in Debt
Tue, Mar 12th 2024, 10:18 AM
Minister of Energy and Transport the Hon. JoBeth Coleby-Davis said the Bahamas Power and Light Company (BPL) has over $500 million in debt.
“Yes, that’s right over half-a-billion dollars and counting. It owes banks, it owes the government and its employee’s pensions are underfunded by $120 million. You heard me! The employees’ pension is underfunded by $120 million. Big change is needed!”
Minister Coleby-Davis was making her Contribution to the 2023-2024 Mid-Year Budget Debate in the House of Assembly on Wednesday, March 6, 2024.
She explained that BPL operates 29 power stations on 17 Islands, and over the next five years BPL will need an investment of over $500 million to upgrade its infrastructure:
$300 million in new generation in New Providence and the Family Islands,
$130 million in transmission and distribution in New Providence in the next two years alone,
$35 million in advanced metering infrastructure, and
$70 million in other costs.
The Minister said, “Today to fix BPL, we need over $500 million to address its debts and over $500 million to upgrade and improve our aged and deteriorated infrastructure.”
Plan to Lower Cost, increase reliability and use cleaner sources of energy
The Energy Minister explained that the Government’s plan has four components, each of which is necessary to finally deliver to Bahamians what they deserve: lower prices, increased reliability, and cleaner sources of energy.
She said the components are:
Incorporate solar as a blended source of energy in the Family Islands with a view to replacing 100MW of generation infrastructure. The Ministry received 29 proposals in response to its Request for Proposal (RFP), and is presently evaluating those proposals and intends to notify the successful bidders by the end of March.
Incorporate solar as a source of 60-100MW of power generation in New Providence. The Ministry issued the RFP and the deadline for submitting proposals is March 28, 2024.
Replace and upgrade much of the Transmission and Distribution System in New Providence to improve reliability and reduce cost.
Ensure New Providence has 340 MW of power to meet demand now, and be in a better position to meet forecast growth in coming years. This requires replacing aged or obsolete generation, purchasing considerable additional new generation, and introducing LNG, liquid natural gas, to increase efficiency of the generating environmental impacts.
PM Davis: Revenues up $72.9 million compared to same period in previous budget cycle
Tue, Mar 12th 2024, 09:49 AM
The Financial Secretary Answers Press Questions on the Mid-Year 2023/24 Budget
Thu, Feb 22nd 2024, 04:21 PM
The Bahamas closes a $500m international loan benefitting from a first-loss IDB guarantee
Fri, Jan 12th 2024, 03:36 PM
Press Statement on the Davis Administration's Expansion of Opportunities for Homeownership for Bahamians
Fri, Jan 12th 2024, 10:04 AM
Foreign currency outflows see $70 million contraction in November year-over-year
Thu, Dec 28th 2023, 04:15 AM
NASSAU, BAHAMAS — Foreign currency outflows saw a $70 million contraction during November relative to the same period in 2022, according to the Central Bank, with transactions for debit and credit cards in particular declining by just over $53 million.
The Central Bank in its Monthly Economic and Financial Development report for November, ind that provisional data on foreign currency sales for current account transactions showed that monthly outflows contracted by $70.1 million, to $538.7 million in November, relative to the same period in 2022.
"In particular, payments for "other" current items—primarily credit and debit card transactions—declined by $53.4 million. In addition, outflows reduced for oil imports, by $26.4 million; transfer payments, by $8.1 million; and factor income payments, by $2.3 million. Conversely, foreign currency sales for non-oil imports rose by $19.6 million and travel-related transactions, by $0.5 million," the regulator noted.
The Central Bank also noted that during November, the reduction in the country's external reserves slowed to $30.6 million from $108.4 million in the preceding year, for an ending balance of $2,463.4 million.
"Underpinning this development, the Central Bank's foreign currency transactions with the public sector reversed to a net intake of $17 million, from a net sale of $53.5 million in the preceding year. Further, the Central Bank's net foreign currency sales to commercial banks moderated to $48.9 million, from $61.9 million in the previous year. In addition, commercial banks' net outflows to their customers fell to $30.1 million, lower than the net sale of $59.7 million in 2022," the regulator said.
According to the Central Bank, monetary developments for November featured a buildup in bank liquidity, with the increase in the deposit base outpacing the growth in domestic credit. Most notably, excess reserves—a narrow measure of liquidity—expanded by $49.3 million to $1,887.0 million, a reversal from a $24.1 million falloff in 2022. Similarly, excess liquid assets—the broad measure of liquidity—rose by $26.1 million to $2,906.3 million, a shift from a $6.3 million decrease in the prior year.
Milo Butler Investments Completes Final Phase of $12M Downtown Freeport Project
Thu, Dec 14th 2023, 10:25 AM
SPA Fitzgerald says that Climate Crisis Poses a ‘Financial Challenge’ for The Bahamas
Mon, Dec 4th 2023, 11:17 AM
Ministry of Finance Signs Contract for Rooftop Solar Photovoltaic Generation System at UB to reduce energy costs
Wed, Nov 22nd 2023, 01:00 PM
RBC Royal Bank (Bahamas) Limited Donates $20,000 to University of The Bahamas’ School of Nursing
Wed, Nov 15th 2023, 03:32 PM
Bank of The Bahamas records $4.1 million net income in Q1 of its new fiscal year
Wed, Nov 15th 2023, 04:12 AM
NASSAU, BAHAMAS — The Bank of The Bahamas saw a $4.1 million net income for the first quarter of its new fiscal year, a $1.6 million increase over the previous year.
Neil Strachan, the bank's Managing Director commenting on BOB's performance for the period ending September 30th noted that the bank had recorded a net income of $4.1 million compared to the previous year's first quarter net income of $2.5 million which he said depicts the bank's continuous focus and progress.
"The bank's total operating income grew by $2 million compared to the same period in the previous year. This improved performance is attributed to higher interest income derived from the Bank's loan growth and investment of its excess liquidity. Furthermore, the Bank's non-interest revenue contributed to the overall positive variance as the Bank recorded higher income from fees and commissions, merchant services, and prepaid cards," Strachan noted.
"This first quarter financial performance was also positively impacted by the net impairment reversal of $0.4 million compared to a net impairment loss of $1.3 million for the same period in the prior year. Net impairment reversal is attributed to the note receivable balance where the Bank adjusted its provisions assumptions based on the interest payments performance, the economy, and its related positive indicators."
Operating expenses increased by $2.2 million for the period, mostly due to employee and occupancy expenses, other administrative costs, banking and business licenses, and depreciation expenses. Regulatory and statutory license fees also increased along with additional building insurance and administrative expenses.
Strachan reported that the bank's financial position continues to be strong with total assets of $951.3 million, of which loans and advances, net accounted for $363.2 million as of September 30, 2023.
$250 million South Long Island development generating "renewed hope"
Wed, Nov 15th 2023, 04:07 AM
$250k paint contract examined in Gibson trial
Mon, Nov 13th 2023, 08:03 AM
BAIC and SBDC Sign MOU to Facilitate Financial Assistance for SME's
Thu, Nov 9th 2023, 02:53 PM
FTX founder Sam-Bankman-Fried convicted of defrauding cryptocurrency customers
Fri, Nov 3rd 2023, 09:24 AM
Bahamas Development Bank Awards $56,000 in Development Grants
Fri, Oct 20th 2023, 10:06 AM
Entrepreneurs spanning several sectors were recently awarded a 50th Independence Development Grant from The Bahamas Development Bank (BDB). The 28 Bahamian awardees received $2,000 each for the purchase of equipment, working capital, or training needed to scale up their businesses.
During a special reception hosted by the bank in celebration of the recipients, BDB Chairman, Senator The Hon. Quinton C. Lightbourne, noted entrepreneurship as a driving force behind job creation and community development.
“By empowering entrepreneurs, we empower the nation. The Bahamas Development Bank stands as a steadfast supporter of enterprising individuals,” he said.
The BDB 50th Independence Development Grant recipients are Anna Moss, Atiya Brown, Carlton King, Charles Richardson, Chendi Evans, Francis Pascal, Garth Jackson, Geoffrey Dugay, Giorgio Knowles, Jada Miller, Janice Ramsey, Jenson Rolle, Jessica Newbold, Lakeisha Rolle, Mataeo Ferguson, Nathan Taylor, Neville Seymour, Nicole Josey, Paula Meadows, Paulette Richardson, Pia Stubbs, Quinneka Smith-Hall, Quinton Johnson, Ranjan Johnson, Shayne Archer, Sherwood Rahming, Tito Bethel, and Valencia Nottage-Oliver. Their businesses represent various fields including agriculture, clothing, education, fashion, finance, landscaping, and healthcare.
BDB is mandated to provide financing for economically viable projects that create employment, utilize Bahamian materials and resources, reduce imports and increase exports, introduce new technology and skills, and promote prosperity for all Bahamians.
Update on the revised EU list of non-cooperative jurisdictions for tax purposes
Wed, Oct 18th 2023, 09:57 AM
Finance's procurement list called 'incomplete'
Tue, Oct 17th 2023, 08:53 AM
Grand Bahama Shipyard Launches $600 Million Transformation
Wed, Oct 11th 2023, 01:33 PM
Bahamian Entrepreneurs Pitch for $10K
Wed, Oct 11th 2023, 01:26 PM